Starting your business wasn’t easy, and growing it is just as challenging.
Some version of growth is necessary for success, but it won’t happen overnight. So today we are diving into the planning, strategy and mindset necessary to reach your growth goals.
Defining Success
First things first, you need to define what success means to you. What’s your big picture goal or purpose?
Some business owners are completely happy being their own boss and bringing in a great wage without working for “the man”. Others want to build revenue, expand product lines, open multiple locations or create jobs.
No goal is good or bad, each entrepreneur is different. The beauty of being a business owner is getting to craft your own destiny. And while your goals may change over time, knowing where you want to go with your business is essential to success.
Examples of how entrepreneurs define success:
- Reaching 1 million in revenue within 3 years
- Bringing home $50,000 in profit/income within 2 years
- Creating change in your community
- Being known as the go-to product or service for your niche
- Selling your business in 5 years
Take time to think this through. Your definition of success will dedicate everything you do!
Analyze Starting Point
Now that you know where you want to go, you need to be clear about where you’re at. Be sure to spend time analyzing various metrics to nail down your starting point.
Examples of metrics to analyze:
- Current revenue
- Current profit
- Current expenses
- Number of customers/clients
- Retention rate
- Churn
- Market share/recognition in your industry
- Level brand awareness within community
Whether you have revenue or impact goals, understanding your current position allows you to strategically craft a plan for success.
Set Goals
The only way to achieve your definition of success is to map out realistic, achieveable goals.
Start by setting annual goals. Next break those down into monthly goals and lastly weekly action steps.
Example of breaking down a long-term goal:
Below is an example of goal setting for an e-commerce business. You can apply this same outline and metrics to a product or service business.
Goal
- Bring home $50,000 in profit/income within 2 years.
Starting Point
- Current Annual Revenue: $55,000 per year
- Current Annual Profit/Income: $40,000 per year
- Current Annual Expense: $15,000
- Number of Customers Annually: 950
- Retention rate/repeat customers: 66%
- Number of Orders Annually: 2150
- Average Order Value: $25
Annual Goals
- Bring home $45,000 in profit/income
- Increase Annual Revenue to $57,000
- Reduce Expenses to $12,000
- Increase Number of Orders to 2280
- Increase Number of Customers to 1000
- Increase Average Order Value to $35
Monthly Goals
- Figure out monthly revenue trends
- Project each month’s revenue based on analysis
- Analyze and reduce expenses where possible
- Offer to Sales/Specials per month
- Implement loyalty program
- Launch 1 new product per month
- Complete monthly reports, review results, make adjustments as needed
Weekly Action Steps
- Create and publish weekly newsletter
- Brainstorm new product idea
- Create 20% OFF promotion
Remember baby steps is the name of the game. Big things have small beginnings.
Implement Growth Strategies
Now that you are equipped with your goals and a plan, it’s time to brainstorm strategies. And while every business is unique, there are some tried and true strategies to grow your business. Here’s a list of “10 Proven Strategies to Grow Your Small Business” according to bplans.com.
10 Growth Strategies:
- Know your customers
- Focus on customer service
- Extend value from current customers
- Leverage social media
- Grow your team
- Showcase your expertise
- Support your community
- Network
- Develop additional income streams
- Measure and iterate
Measure What Matters
Goals aren’t just a “set it and forget” type of thing. You must measure what matters and keep track of metrics. These numbers will let you know if you are staying on track, making progress, and where you need to pivot.
If you want to reach a sales goal, you need to track monthly sales. Want to reach a profit goal, you need to track revenue, expenses, etc. Aiming to reach an impact goal, you need to get creative and figure out how you can quantify it.
Roadmap to Success
As an entrepreneur, you have the freedom to choose your path and destiny. Just remember you must actively choose it and execute. Being proactive and intentional with your actions is key, you won’t achieve the level of growth you desire by accident.
It’s up to you to run your business, don’t let your business run you.
And don’t forget the path to success isn’t a straight line. There will be bumps in the road. Check out the article “Grow Your Business” by GrooveHQ to hear some real life tips on the journey to business growth.
We’ve Got Your Back!
I know all this planning and numbers stuff makes some entrepreneurs want to run away screaming, that’s where we come in. The Biz Foundry coaches are here to help you clarify your vision, set goals, stay on track and make sense of all the details so you can achieve your dreams. Book a free session today!
